AATC WACC - Weighted Average Cost of Capital
The WACC of Autoscope Technologies Corp (AATC) is 10.3%.
| Range | Selected | |
| Cost of equity | 8.9% - 12.2% | 10.55% |
| Tax rate | 28.3% - 39.5% | 33.9% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 8.7% - 11.8% | 10.3% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.09 | 1.31 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.9% | 12.2% |
| Tax rate | 28.3% | 39.5% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 8.7% | 11.8% |
| Selected WACC | 10.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AATC | Autoscope Technologies Corp | 0.04 | 0.36 | 0.35 |
| FLIR | FLIR Systems Inc | 0.1 | 1.56 | 1.45 |
| ITRI | Itron Inc | 0.2 | 0.98 | 0.86 |
| KEYS | Keysight Technologies Inc | 0.06 | 1.63 | 1.56 |
| NATI | National Instruments Corp | 0.07 | 0.97 | 0.92 |
| NOVT | Novanta Inc | 0.09 | 1.53 | 1.43 |
| TRMB | Trimble Inc | 0.07 | 1.45 | 1.38 |
| VNT | Vontier Corp | 0.38 | 1.32 | 1.04 |
| ZBRA | Zebra Technologies Corp | 0.13 | 1.58 | 1.44 |
| Low | High | |
| Unlevered beta | 1.11 | 1.42 |
| Relevered beta | 1.13 | 1.46 |
| Adjusted relevered beta | 1.09 | 1.31 |
AATC's CAPM model and how its cost of Equity is calculated
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for AATC:
cost_of_equity (10.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.09) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.